New Zealand: Omnibus tax bill introduced

New Zealand: Omnibus tax bill introduced

The New Zealand government released a 150-page omnibus tax bill that includes measures to revise the tax rules for closely held companies, broaden the application of the non-resident withholding tax rules, and implement the recent related-party debt remission (and capitalisation) announcement.

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The bill also includes certain goods and services tax (GST) changes and various “remedial” amendments. 

The tax bill contains a number of “taxpayer-friendly measures”—such as measures that would legislatively confirm that related-party debt remissions and  capitalisations would not create adverse tax consequences and certain parts of the close company tax package, such as removing loss limitation restrictions for look-through companies.

The non-resident withholding tax rules concerning related-party offshore funding may represent a further New Zealand response to base erosion and profit shifting (BEPS) concerns.

 

Read a May 2016 report [PDF 604 KB] prepared by the KPMG member firm in New Zealand: Omnibus tax bill is introduced

Budget day

New Zealand’s budget is scheduled to be presented on 26 May 2016.

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